Heineken Lokpobiri, the Minister of State for Petroleum Resources, has reaffirmed his resolve to hold the Nigerian National Petroleum Company Limited (NNPCL) accountable for meeting the scheduled deadlines for the rehabilitation of the nation’s refineries.
During a three-day retreat at the Presidential Villa, he shared this commitment with State House Correspondents.
The NNPCL has been tasked with the monumental mission of reviving three refineries in Nigeria, with the primary aim of reducing fuel shortages and encouraging the use of natural gas.
Despite substantial investments exceeding $25 billion over the past decade, the refineries were operating at less than 30% of their capacity, a fact reported by the 9th National Assembly.
In response to this, the Senate has established an ad-hoc committee to scrutinize the NNPCL’s expenditure of N11.35 trillion on the Turn Around Maintenance (TAM) of the refineries.
The committee’s objective is to assess the most effective approaches for commercializing and ensuring the profitability of state-owned refineries, involving the Federal Ministry of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), NNPCL, and the Bureau of Public Enterprises.
When questioned about the anticipated completion dates for the refinery rehabilitation, Lokpobiri clarified, “I have personally visited all the refineries, and according to the briefings I received, Port Harcourt’s Phase 1 is slated to be ready by year-end. I am not directly responsible for the rehabilitation; it’s the NNPCL’s responsibility, and they have assured me of their commitment, which I will hold them to.”
He proceeded to outline the progress in the various phases of rehabilitation, explaining, “For the Warri refinery, they have indicated that Phase 1 will be completed by the end of this year. As for Phase 2 and 3 in Port Harcourt, they are expected to be completed next year, and the entire Kaduna refinery should be operational by the end of the following year. This is their stated timeline, and I will hold them accountable for their commitments.”
Lokpobiri emphasized the necessity of increasing domestic production to support the refineries. He acknowledged the impending Dangote refinery and the challenges faced by modular refineries due to limited feedstock.
To address this, he has streamlined the licensing process for modular refineries, stating, “I have also made it clear that I won’t issue licenses for decorative purposes. If you receive a license, you must adhere to the terms, or else it will be revoked.”
Lokpobiri underscored the significance of bolstering production to address the country’s fuel crisis. He expressed confidence in tackling issues related to insecurity, insufficient investments, and other concerns in the oil sector, with a goal of achieving ambitious production targets. “By the year’s end, we should be producing close to 2 million barrels per day,” he asserted.
